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E*TRADE Bank Review: Great for APYs and No-Fee Accounts

Review Updated
Steven Porrello
Author: Steven Porrello
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Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Jamie Matthews
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Fact Checked: Ashley Maready
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Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
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Member FDIC.

E*TRADE

Bottom Line

E*TRADE banking accounts are the perfect add-on to your E*TRADE brokerage account. With good APYs and no (or waivable) fees, they can help your uninvested cash earn extra interest, plus give you a fee-free option to withdraw it from an ATM.

Pros
  • Competitive APYs
  • No-fee accounts
  • No monthly minimums
  • ATM reimbursements
  • Debit card
  • Member FDIC
Cons
  • No branch access
  • Withdrawal limitations on savings accounts
  • No cash deposits

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how Motley Fool Money rates bank accounts.

Is E*TRADE Bank right for you?

E*TRADE is not just an online brokerage -- it also offers online banking services powered by Morgan Stanley Private Bank. You can use E*TRADE as an add-on to a brokerage account, or as the home base for your everyday banking.

E*TRADE Bank may be a good option for you if:

  • You already have an E*TRADE brokerage account.
  • You are comfortable with doing your banking 100% online, with no bank branches.
  • You want high yields on a savings account, CDs, or checking account.

Bank fees

E*TRADE Bank Fee Charge
Monthly maintenance fee $0 for Checking, Savings, and CD accounts
$15 for Max-Rate Checking -- can be waived with minimum $5,000 average monthly balance
ATM fees $0
Checkbook orders $0
Coverdraft protection $5 per transaction
Stop payment requests $0
Incoming wire transfers $0
Outgoing wire transfers $25
Foreign transaction fee 1% of transaction amount
Data source: E*TRADE

Savings account

E*TRADE offers one savings account through its partnership with Morgan Stanley Private Bank -- the E*TRADE Premium Savings. This is a high-yield savings account with a 4.00% APY. It has no monthly maintenance fees, no minimum requirements, and can offer up to $500,000 in FDIC insurance -- twice the standard $250,000 most banks offer.

You can transfer money instantly from your E*TRADE Premium Savings to all other E*TRADE accounts, including checking and brokerage, but it will take a few days to transfer money to an external account.

Unlike some other savings accounts, the E*TRADE Premium Savings is not eligible for an ATM card or debit card. Another drawback is that E*TRADE limits your withdrawals and transfers to six per month. Any withdrawals beyond limit that could cause E*TRADE to close your account, convert it into a checking account, or remove your transfer capacity.

If you want to withdraw cash from an ATM, you could pair the E*TRADE Premium Savings with an E*TRADE checking account for instant transfers.

E*TRADE Premium Savings
Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Dec 20, 2024

E*TRADE Premium Savings

Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

APY
4.00%
Min. To Earn APY
$0.01
  • Conveniently transfers money to brokerage account
  • Decent APY
  • No monthly maintenance fees
  • High deposit insurance
  • Better APYs at other banks
  • No ATM access
  • No branch access
  • Withdrawal limitations

With no monthly account fees and no account minimums, the E*TRADE Premium Savings can be a great add-on to your E*TRADE brokerage account or a standalone place to earn yield on your cash. Its APY is competitive with some of the best savings accounts; only a few banks offer higher yields.

Read Full Review

Certificates of deposit

E*TRADE offers two types of certificates of deposit (CDs). The first is a typical online banking CD, offered through Morgan Stanley Private Bank. These E*TRADE Bank CDs have competitive APYs and a number of term lengths to choose from. E*TRADE also offers brokered CDs for its brokerage account customers, which can be more complex but might earn higher yields.

E*TRADE Bank CDs

E*TRADE Bank CDs are available through Morgan Stanley Private Bank, and offer fixed rates for specific terms of time. You can choose from a variety of terms. There is no minimum deposit requirement and no monthly fees for E*TRADE Bank CDs.

Here are the latest E*TRADE Bank CD rates.

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for E*TRADE CD
E*TRADE CD
Bottom Line

E*TRADE tends to offer pretty competitive CD rates for a variety of terms from six months all the way up to five years. No minimum deposit requirement makes these CDs friendly for even small investments. Member FDIC.

MINIMUM DEPOSIT $0
Read Review
6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 5 Yr. APY
4.25% 4.25% 4.25% 3.90% 3.80% 3.60% 3.50%

  • In addition to E*TRADE Bank CDs from Morgan Stanley Private Bank, E*TRADE also offers E*TRADE brokered CDs. These are CDs that can be purchased through your E*TRADE brokerage account.

    E*TRADE buys the brokered CDs in bulk from numerous banks and packages them together with its own terms and APYs. Like other brokered CDs, you can buy and sell E*TRADE CDs on a secondary market -- which could result in a profit or loss -- as well as purchase them new. You'll need an E*TRADE brokerage account to view and purchase current CD offerings.

    Brokered CDs often have higher APYs than bank CDs, though there is a catch: Unlike bank CDs, brokered CDs have simple interest, meaning you'll earn interest on your principal only, not on any interest you've already accumulated.

    Finally, brokered CDs come with up to $250,000 in FDIC insurance per depositor, per insured bank. That means, if you bought four CDs from four different banks, you could have up to $1 million in FDIC insurance.

Compare CD rates

Rates as of Dec. 18, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 10 Months Min. Deposit:  $2,500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $500
Open Account for

On Secure Website.

Checking accounts

E*TRADE offers two checking accounts, and both earn interest. Both have no ATM fees (and very few fees of any kind). But if you want to maximize the yield on your everyday cash, E*TRADE Max-Rate Checking could be the best choice.

E*TRADE Max-Rate Checking

E*TRADE Max-Rate Checking is the premier checking account from E*TRADE Bank, offered by Morgan Stanley Private Bank. With E*TRADE Max-Rate Checking, you can earn an impressive 3.00% APY on your checking account balance. This is one of the highest-yield checking account rates we've seen. And while many other high-yield checking accounts only pay their highest APYs up to a limited balance amount, E*TRADE Max-Rate Checking pays the same high APY on your entire balance.

Other perks of the E*TRADE Max-Rate Checking include free ATM withdrawals worldwide (not just in the U.S., like most banks). This checking account also has no transaction fees for online transfers, wire transfers, or stop payments. Although E*TRADE Max-Rate Checking charges a $15 monthly account fee, this fee can be waived if you maintain an average $5,000 monthly balance.

E*TRADE Premium Savings
Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Dec 20, 2024

E*TRADE Max-Rate Checking

Open Account for E*TRADE Max-Rate Checking

On E*TRADE's Secure Website.

Member FDIC.
Rating image, 4.25 out of 5 stars.
4.25/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.25 out of 5 stars.
4.25/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for E*TRADE Max-Rate Checking

On E*TRADE's Secure Website.

APY
3.00%
Min. To Earn APY
$0.01
  • High APY
  • ATM refunds worldwide
  • High monthly fee
  • No branch access

For those who want to earn more interest on their checking account balance, E*TRADE Max-Rate Checking offers one of the highest APYs we've found. You'll need to keep an average monthly balance of $5,000 to waive the $15 fee, but you'll get fee reimbursements for ATMs worldwide.

  • The E*TRADE Checking account is a free checking account with no monthly fees, no monthly minimums, no minimum deposit, and very few of the traditional fees associated with checking accounts, such as wire transfers (incoming) and stop payments. Better yet, this free checking account earns a 0.05% APY, which is pretty decent for a free checking account. The account comes with a debit card, which you can use at ATMs, plus you'll get unlimited ATM reimbursements nationwide.

E*TRADE Premium Savings
Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

Member FDIC.

Ratings Methodology
Rates as of Dec 20, 2024

E*TRADE Checking

Open Account for E*TRADE Checking

On E*TRADE's Secure Website.

Member FDIC.
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Open Account for E*TRADE Checking

On E*TRADE's Secure Website.

APY
0.05%
Min. To Earn APY
$0.01
  • Earns interest
  • No monthly maintenance fees
  • No minimum balances
  • ATM fee reimbursements nationwide
  • No branch access

E*TRADE Checking is ideal for E*TRADE clients who want a no-frills, free checking account that earns interest. There's no branch access, but you can use your debit card at ATMs with unlimited fee reimbursements.

Customer experience

E*TRADE Bank has high APYs and some unique perks for its bank account products -- but how does it score for customer satisfaction? Let's take a closer look.

Customer reviews

Like many banks and financial institutions, E*TRADE doesn't have great customer service reviews. In fact, it ranks low on most third-party websites. It currently maintains an F rating with the Better Business Bureau, It earns 1.09 out of 5 stars from an average of 74 customer reviews.

Its Trustpilot account is no better: based on 436 reviews, it currently has a 1.2 out of 5 stars rating. Although these ratings represent all of E*TRADE's financial services -- including its brokerage accounts -- it's something to keep in mind if customer service is important to you.

According to the recent J.D. Power 2024 U.S. Self-Directed Investor Satisfaction Study, E*TRADE ranked in fifth place for overall customer satisfaction among investors who are "seeking guidance." E*TRADE placed just behind Vanguard. This might be a better indication of the overall quality of experience as an E*TRADE customer -- within range of the best online brokerages, if not always at the very top.

  • Better Business Bureau rating: 1.09 out of 5
  • Trustpilot rating: 1.2 out of 5

You can contact E*TRADE customer service for bank accounts by calling 800-387-2331. The E*TRADE website doesn't specify any customer service hours for its bank account customer service team. You can also contact E*TRADE via regular mail or overnight mail.

Mobile app

The E*TRADE mobile app gets impressively positive reviews for iOS and Android devices.

With the E*TRADE mobile app, you can access your E*TRADE Bank accounts and brokerage accounts all in one place. You can do investing, trading, banking, research, and more. Reviews of the app are generally favorable.

  • App Store rating: 4.6 out of 5 stars
  • Google Play rating: 4.7 out of 5 stars

Physical locations

E*TRADE used to have branch offices where you could go to meet with E*TRADE staff. But now E*TRADE is 100% online. You can deposit cash into your E*TRADE bank account via mobile check deposit, online transfer, wire transfer, or mail.

If you need to get cash from your E*TRADE bank account, you need to transfer it to an external account or withdraw it from an ATM -- and there are no ATM fees.

How does E*TRADE Bank compare?

E*TRADE has a decent selection of deposit accounts, but it might not have everything you're looking for. If E*TRADE isn't a good fit for you, here are a few other banks worth considering.

E*TRADE vs. Charles Schwab Bank

Like E*TRADE, Charles Schwab Bank offers a full suite of brokerage, banking, and financial services.

As a bank, it offers a variety of no-fee checking and savings accounts, some with reimbursements on ATM fees incurred worldwide. Its APYs aren't as strong as E*TRADE, although it does have interest-bearing checking accounts and a great selection of brokered CDs.

E*TRADE vs. Chase

For a large branch network and a full range of deposit accounts, look no further than Chase. As the largest bank in the U.S., Chase has everything you need for your personal finances, from checking to savings to CDs to credit cards and mortgages and personal loans.

Its APYs are nothing to get excited about -- indeed, some rank among the lowest -- but if in-person service is what you're after, you might be happy with one of its 4,700 branches. It also offers lucrative relationship benefits if you qualify for Chase Sapphire banking membership.

FAQs

  • Morgan Stanley Private Bank is the primary bank behind E*TRADE's banking services.

  • No, you don't need an E*TRADE brokerage account to enjoy its banking services. You can open an account separately.

  • Yes, E*TRADE Bank accounts are FDIC insured through Morgan Stanley Private Bank. The money in your E*TRADE bank account is protected against bank failure with FDIC insurance up to $250,000 per account (for E*TRADE Checkings, E*TRADE Max-Rate Checkings, and CD accounts) or up to $500,000 for E*TRADE Premium Savings.